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Specialists in Franchise Accounting
Pam, Chief Executive Officer of CFO Incorporated, is actively involved in day-to-day business processes and is responsible for the company’s overseas operations. She is the Managing Director of CFO Incorporated wholly-owned subsidiary, HSB Management Consultants Private Limited, a firm based in India which provides CFO Incorporated with accounting professionals and support. Pam is relentless in her pursuit of operational excellence in all company activities, leads by example in streamlining processes with a continuous-improvement mindset.
Managing Partner of PVS Buttar and CFO Incorporated, Pami is responsible for the management, formulating and executing long-term strategies, and interacting with clients, employees, and other stakeholders. Pami is actively involved in the community, an avid golfer, fisherman and loves spending time with his three children and wife.
The calculators are below and will provide you with a variety of health checks for your income statement, cash flow, and balance sheet. Please feel free to schedule a consultation with one of our experts to see how we can help interpret these numbers and help turn them into meaningful insights for your business.
EBITDA Calculator
EBITDA is a measurement commonly used to measure a company’s profitability. To calculate this, look at your income statement, enter your net income, interest, taxes, depreciation, and amortization. Net Income is your profit, typically found at the bottom of your income statement. Interest significantly differs between companies, and that is the reason we back it out, as it depends on how the company finances their activities. Income Taxes differ by location and typically aren’t related to operational performance, so therefore removing these allows for us to subjectively determine the company’s profitability. Depreciation and Amortization are non-cash expenses, which we remove as EBITDA attempts to represent the profitability of the company using cash metrics.
Burn Rate Calculator
The Burn Rate calculator is used to tell you how much of your spending is towards operating expenses. To start calculating your burn rate, it is easiest to grab these numbers from your cash flow statements. Start by inputting your cash balances for the periods you want to evaluate. It’s important to use enough periods so that the average burn rate is indicative of the typical operations of the company. We recommend that you use a 3-4 month gap between the starting cash balance and ending cash balance as per your monthly financial statements, so you know how much of a runway you have of cash, given your company continues to burn cash at the rate previously discussed. If your burn rate is negative, it means you’re making more money than you’re spending!
Current ratio calculator
Your current ratio is a comparison of current assets to current liabilities. Investors and lenders typically use current ratio as a measure of the company’s liquidity, or their ability to pay off short-term debts. Enter your total current assets, and your total current liabilities to determine your current ratio.
quick ratio calculator
The quick ratio helps provide a judgement of the extent to which a business can pay its short-term obligations with its most liquid assets. It is like the current ratio, as it uses your current assets and current liabilities. However, the key difference is that we subtract out inventory, as inventory is deemed to not be as liquid as other current assets. This is another good test to determine how the company can meet their short-term obligations.
